SENATE BILL No. 1387

 

 

November 29, 2012, Introduced by Senators MEEKHOF, HILDENBRAND, MOOLENAAR and JANSEN and referred to the Committee on Reforms, Restructuring and Reinventing.

 

 

 

     A bill to amend 1965 PA 166, entitled

 

"An act to require prevailing wages and fringe benefits on state

projects; to establish the requirements and responsibilities of

contracting agents and bidders; and to prescribe penalties,"

 

by amending the title and section 2 (MCL 408.552).

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act to require prevailing wages and fringe benefits on

 

state projects; to prohibit prevailing wage requirements under

 

certain circumstances; to establish the requirements and

 

responsibilities of contracting agents and bidders; and to

 

prescribe penalties.

 

     Sec. 2. Every Except as provided in this section, every

 

contract executed between a contracting agent and a successful

 

bidder as contractor and entered into pursuant to advertisement and


 

invitation to bid for a state project which that requires or

 

involves the employment of construction mechanics, other than those

 

subject to the jurisdiction of the state civil service commission,

 

and which that is sponsored or financed in whole or in part by the

 

state shall contain an express term that the rates of wages and

 

fringe benefits to be paid to each class of mechanics by the bidder

 

and all of his subcontractors, shall be not less than the wage and

 

fringe benefit rates prevailing in the locality in which the work

 

is to be performed. Contracts on state projects which that contain

 

provisions requiring the payment of prevailing wages as determined

 

by the United States secretary of labor pursuant to the federal

 

Davis-Bacon act, (United States code, title 40, section 276a et

 

seq) reenacted by Public Law 107-217, and certified at 40 USC 3141

 

to 3144, 3146, and 3147, or which that contain minimum wage

 

schedules which that are the same as prevailing wages in the

 

locality as determined by collective bargaining agreements or

 

understandings between bona fide organizations of construction

 

mechanics and their employers are exempt from the provisions of

 

this act.

 

     (2) A contract of an educational institution is exempt from

 

the prevailing wage requirements of this act. Except as otherwise

 

required to comply with state or federal law or as a condition of

 

receipt of federal funds, an educational institution shall not

 

adopt a prevailing wage or benefit policy or requirement in

 

relation to a contract for a state project under the control of the

 

educational institution that requires compensation of employees

 

under the contract at particular minimum rates of pay or requires


 

particular kinds or levels of fringe benefits. This subsection does

 

not prohibit an educational institution from contracting with a

 

contractor who voluntarily or by contract with another party pays a

 

prevailing wage or provides particular fringe benefits. This

 

subsection does not apply to a contract in effect on the effective

 

date of the amendatory act that added this subsection.

 

     (3) As used in this section, "educational institution"

 

includes all of the following:

 

     (a) A school district, an intermediate school district, or a

 

public school academy as those terms are defined in section of the

 

revised school code, 1976 PA 451, MCL 380.4 to 380.6.

 

     (b) A community college established under the community

 

college act of 1966, 1966 PA 331, MCL 389.1 to 389.195, or under

 

part 25 of the revised school code, 1976 PA 451, MCL 380.1601 to

 

380.1607.

 

     (c) A public university of this state.